SPRING invests $45mn in food manufacturing industry

The initiative aimed to improve productivity by 20% as Singapore’s food industry enjoys a good reputation here and overseas.

A total of $45 million will be committed to boost the productivity in the food manufacturing industry over the next five years. The plan, driven by SPRING Singapore, is expected to increase the sector-wide nominal value-added (VA) per worker by about 20 per cent by 2016. Areas earmarked for improvement include automation and adoption of productivity improvement tools, product innovation and workforce investment. This was announced by Mr Lee Yi Shyan, Minister of State for Trade & Industry and National Development at the opening of the Asia Pacific Food Expo 2011.

At the launch, Mr Lee said: “Our food industry enjoys a good reputation here and overseas. Its reputation is built upon high quality and safety. Therefore, to ensure our industry remains competitive, the Government has set aside $45 million to help our food manufacturing sector to enhance productivity over the next five years.”

The food manufacturing industry comprises 850 companies. In 2009, it employed 26,000 workers and contributed some $1.8 billion of value-added to the Singapore economy. The nominal value-added per worker at $70,000 lags behind that for the overall economy at $90,300. SPRING will collaborate with industry partners such as Singapore Food Manufacturers’ Association (SFMA) to support food manufacturers in their drive towards higher productivity to remain globally competitive.

SPRING aims to put in place resources to aid food manufacturers who are keen to improve their operational efficiency, but lack the know-how to do so. These include a pool of local industry experts that are trained to guide companies in process streamlining and workflow re-design. A food automation resource will be launched to provide technical expertise in the development of customised automation solutions.

To adapt and cater to the dynamic taste buds of consumers, investing in consumer insights research or adopting Design Thinking methodology in product innovation are ways which food manufacturers can generate ideas. SPRING is working with the industry to train and place food technologists in food manufacturers to kick start their R&D capabilities to create better and higher value-added products. By 2016, SPRING aims to help food manufacturers develop 100 new products or packaging for the local and global consumers.

A skilled workforce is imperative for continued growth. In the area of management, CEOs and future business leaders can expect to get more support to develop their abilities further. Food manufacturers can turn to WDA which has developed WSQ Food Manufacturing courses that support the companies with industry-specific training to upgrade their workers skills. Over 2,600 people are expected to benefit from all these training efforts. Food manufacturers will also receive support to improve HR practices to better attract and retain manpower talent.